Finland has been named the happiest country in the world for the eighth consecutive year, according to the World Happiness Report 2025, released on March 19. The annual report, published by the Wellbeing Research Centre at the University of Oxford, found that Finland continues to lead in global happiness rankings, followed by Denmark, Iceland, and Sweden in the top four positions.
India has shown a slight improvement in its ranking, moving up from 126th place in 2024 to 118th this year. However, despite this progress, India remains ranked lower than several conflict-affected nations, including Ukraine, Mozambique, Iran, Iraq, Pakistan, Palestine, the Democratic Republic of Congo, Uganda, Gambia, and Venezuela.
The rankings in the report are based on individuals’ self-assessments of their happiness and life satisfaction. The study, conducted in collaboration with Gallup and the United Nations Sustainable Development Solutions Network, examines the factors influencing happiness beyond just economic growth.
Trust and Social Connections Key to Happiness
“Happiness isn’t just about wealth or growth — it’s about trust, connection, and knowing people have your back,” said Jon Clifton, CEO of Gallup. “If we want stronger communities and economies, we must invest in what truly matters: each other.”
Researchers found that happiness is significantly influenced by social trust, relationships, and community support. The study emphasized that factors such as sharing meals with family and friends, having a dependable support system, and household size contribute to overall well-being.
For instance, in Mexico and parts of Europe, a household size of four to five people correlates with the highest levels of happiness. Additionally, belief in the kindness of others was identified as a crucial factor.
One notable finding was that the perceived likelihood of retrieving a lost wallet is a strong predictor of a nation’s overall happiness. Nordic countries, including Finland and Denmark, ranked highest in both expected and actual rates of wallet returns, reinforcing the link between trust and well-being.
Globally, researchers discovered that people tend to underestimate the goodwill of others. In reality, the rate of lost wallet returns is nearly double what people expect.
Global Happiness Rankings: Top and Bottom Countries
European nations continue to dominate the top 20 in global happiness rankings. Despite its ongoing conflict with Hamas, Israel secured the 8th position. Costa Rica and Mexico entered the top 10 for the first time, ranking 6th and 10th, respectively.
However, some major economies have seen a decline in their happiness rankings. The United States fell to 24th place—its lowest ranking to date—after previously peaking at 11th place in 2012. The study highlighted a significant shift in American social habits, noting a 53% increase in people dining alone over the past two decades.
The United Kingdom, ranked 23rd, recorded its lowest average life evaluation since 2017.
At the bottom of the list, Afghanistan remains the unhappiest country in the world. Afghan women reported facing especially difficult living conditions, contributing to the country’s persistently low ranking. Sierra Leone in West Africa is the second unhappiest nation, followed by Lebanon in third place from the bottom.
Young Adults Facing Increased Loneliness
The report highlighted a growing crisis of loneliness among young adults worldwide. In 2023, 19% of young adults reported having no one they could rely on for social support—a 39% increase compared to 2006. This trend raises concerns about the long-term implications of social isolation and its impact on mental health and well-being.
Factors Influencing Happiness
The rankings in the World Happiness Report are determined by self-reported life evaluations collected between 2022 and 2024. Experts in economics, psychology, and sociology analyze the variations in happiness across countries using a combination of factors, including:
- GDP per capita – Economic prosperity and financial security
- Healthy life expectancy – Access to healthcare and overall physical well-being
- Social support – Having people to rely on in times of need
- Sense of freedom – The ability to make personal choices
- Generosity – Willingness to help others and donate to charity
- Perceptions of corruption – Public trust in government and institutions
The study underscores that while economic growth is important, other social and emotional factors play a critical role in determining a nation’s overall happiness.
As happiness remains a crucial indicator of overall well-being, the report encourages policymakers worldwide to focus on fostering social trust, community support, and a sense of security to improve happiness levels across nations.